Professor Glenn A. Okun
The 8:30 AM CPI release is not providing a definitive read on inflation.
Core CPI is 4.1%, up slightly, .3%, in line with estimates. The All-Items Consumer Price Index has increased 3.7%, up .4%, versus estimates of 3.6%.
Housing and energy inflation remain problematic. Housing is up .6%, significantly higher, accounting for over half of the increase in the monthly all-items index. Energy is up 1.5%, making a significant contribution to all-items CPI as well.
The Rabid Capitalist expects that the Fed will continue to engage in watchful waiting. The data will not cause the Fed to change its policy stance of higher for longer. It does not clarify the Fed’s decision to increase rates later this year.
These moves will be based on future data. In other words, the interest rate misery, and all of its consequences, will continue.
The Rabid Capitalist 
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